Have you ever
wondered how a petroleum refinery works? How we can use products such as
gasoline, medicines, plastics, or agricultural chemicals? What the steps are in
the refining process? Who are responsible with making the process successful?

I’m sure by now
you already had these questions about the petroleum refining process. So, here’s
the step-by-step process of how refineries transform crude oil into more usable
forms.

Distilling Phase

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The first step
towards the transformation of crude oil to usable forms is the distilling
phase. In a distilling column, liquid is turned to vapor at different levels,
and then distilled again to separate liquids.

The top is
cooler than the bottom of the column, resulting to condensation of the liquid
and collected to their respective trays. Light products end up at the top,
while straight run residue at the bottom of the column.

Cracking Phase

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Due to products
like gasoline being more in-demand in the market, straight run products are
converted to lighter liquids. This is where the cracking phase comes in. The
term cracking is derived from how molecules of heavy liquids are turned into
smaller, but more useful molecules. In turn, the liquid will be lighter and
have more value in the market.

Reforming Phase

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The reforming
phase is undergone by the liquid for the purpose of raising the quality and
volume of gasoline that can be produced by refiners. Increasing the octane is
needed to have cleaner fuels.

The reforming
process makes this possible by producing reformate, a substance needed to
increase octane. During the reforming process, there might be catalysts used
which starts the treating phase.

Treating Phase

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Fuels that we
use every day need to have no contaminants in order to be effective. Since
crude oil naturally contains sulphur, nitrogen, and other contaminants, the
treating phase aims to remove these chemicals through hydrogen binding.

After binding
with hydrogen, acids are then poured to their respective columns to remove
contaminants. Some of the molecules that aren’t used for the petroleum industry
is then sold to other industries.

Blending Phase

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Finally, the
refining process undergoes the blending phase for crude oil to turn into
finished petroleum products. Since motor vehicles require certain
specifications to maximize their performance, refineries adjust the finished
products so it meets these needs.

The blending
process doesn’t necessarily need to take place at refineries. It can even be at
off-site locations or anywhere outside the refinery gate, as long as it goes
through pipelines.

The People behind the Process

The refining process can be very sophisticated. So, to ensure that the
refining process will go smoothly, crude oil refineries hire some of the top
scientists and engineers around the world.

As you can see, the entire refining process is complex and intricate. We
trust that you now have a better understanding of this interesting industry.

Whether you’re
looking to go into the oil and gas business with your first rig, or an
established drilling business with the desire to expand or have other branches,
you have to buy a drilling rig.

However, different
types of oil and gas businesses also require a different drilling rig.
Sometimes, people make a mistake with buying one and that leads to a negative
return-on-investment.

So here are
different considerations that you need to take before you buy a drilling rig.

Used Drill Rigs

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When deciding to
buy drill rigs, one question that comes to mind is if you’ll purchase used
drill rigs or new ones. However, if you finally decide to buy a used drill rig,
remember that the treatment of companies to the rigs will differ.

They may have
used it harshly, or gently. Also check the hydraulic systems and other parts of
the rig if there aren’t any issues present.

Upgraded Technology

Continuous use
of your old drilling rig will wear out its productivity and quality, even when
it’s not obvious. So, buying a new drill rig provides you with more
productivity and possibly help you drill more meters.

It will also
decrease uptime and have more safety measures installed. Having more safety
measures will reduce cost of a drilling contractor.

The Drilling Company

Besides the
improvement in technologies, you also have to consider how the drilling company
is doing things. For example, their productivity with their employees on
producing new drill rigs if it’s still high-quality.

Another
consideration you should make in checking the drilling company is their ability
to mobilize contracts.

Availability

There are times
when you should expect drilling companies to have longer lead times. Whenever
the inventory is high, production of rigs isn’t maximized and lead times are
reduced.

However, if the
inventory is low, drilling rig production will be faster so lead times will be
increased.

Reliability

Whenever your
old rigs break down, the down time can affect your productivity and reduce your
profit. It can also affect drilling contracts and the costs will start piling
up. It can be due to the loss of productivity, uptime contractual obligations,
and repair costs.

So, having a new
drill rig can keep a contractor from getting kicked off a contract.

Price

When you’re
buying a new drill rig, there are several options out there, and some are super
cheap. While it may be tempting to buy those, you have to consider the total
cost of ownership.

Take your time
calculating the price of each of the replacement parts and you’ll find that it
would help you in the long run. At the end of the day you’ll have to do at
least some homework and research in finding a drilling rig that best suits your
business goals and needs.
We trust that our list of considerations have
informed you of all the necessary details to look into before buying the first
and best option you find.

Crude oil is a
commodity to many countries but it’s also the most unrefined product found in
the market. That’s why there are only limited buyers of crude oil in the world,
compared to buyers of other products.

Most importantly,
a crude oil cargo can cost up to 150 million USD. Getting a deal out of a
company with no proven credibility can cost you a fortune!

Whether you have
a cargo of crude oil at your disposal or looking to be an oil tycoon, you
should know about these 5 most reliable crude oil buyers around the world.

Phelps Dodge Corporation

Phelps Dodge is
one of the largest copper miners you’ll find around the world. In fact, 30
percent of the copper in the United States come from this corporation.

Equinor ASA

Equinor ASA is a
multinational energy company with their headquarters located in Stavenger,
Norway. Currently, they’re working on providing the world a sustainable energy
future.

Shenzhen Gas Corp Ltd

Shenzhen Gas
Corp is engaged with the retail of different gas products. The company prides
itself with the distribution of gas products, especially petroleum.

Polarcus Limited OSE: PLCS

Polarcus is a
public limited company in the petroleum industry. Their headquarters is located
in Dubai, UAE. The company aims to provide worldwide seismic data acquisition
in order to help improve the targeting of oil and gas reserves.

Seadrill

Seadrill, as the
name suggests, is a deep-water drilling contractor in the petroleum industry.
They provide worldwide offshore drilling services. Despite that, they also
accept oil and gas products.

And that
concludes our roundup of the five largest and most reliable crude oil buyers
and companies around the world. All these companies offer fantastic services
and are trusted by large corporations around the globe.

Starting a
profitable oil and gas business often require large-scale operation and
investment. That’s why only a few people dare to start one, and often they find
themselves failing to get their investment back.

However, you can
always start with small-scale businesses. If you do want to start a large-scale
oil and gas business, it must be very, very sustainable.

Here are six of
those ideas that will enable you to start an oil and gas business and make it
profitable!

Gas Station

A gas station
isn’t exactly the most inexpensive businesses you can put up, but it’s one of
the most viable. Not to mention that it won’t be going out of style soon,
instead it’s actually more booming than ever.

Oil and Gas Consultancy

Responding to
the changes in the market of the oil and gas industry can be difficult. That’s
why companies lean on oil and gas experts for consulting services.

However, if you
are to start an oil and gas consulting services, you should have an outstanding
understanding of the industry.

Petroleum Refining

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Since petroleum
mining is becoming a more and more feasible idea for a business, refining is
also affected. In fact, the mining sector won’t go anywhere without refineries.
However, this is a large-scale operation and requires a huge investment.

Cooking Gas Distribution

The business of
distributing cooking gas is one of the few businesses that you can start with a
small capital. To ensure that you’ll get your investment back, and more, learn
to spread word about your business through word of mouth.

Crude Oil Shipping

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Along with mining
and refining, the shipping sector is also needed to manage the oil and gas
industry. But just like with the mining and refining business, you’ll have to
start with a huge investment.

Invest in Oil and Gas Companies

Now if you don’t
have the required capital to start your preferred oil and gas business, you can
always invest on oil and gas companies.

Are you eager to
invest in your own oil and gas company? With the business ideas shared here,
you’ll definitely be off to a great start. Be sure to do enough research and
get all your facts straight before making the investment.